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A BILL TO BE ENTITLED
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AN ACT
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relating to the sales and use tax exemption for certain aircraft. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 151.328(a) and (h), Tax Code, are |
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amended to read as follows: |
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(a) Aircraft are exempted from the taxes imposed by this |
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chapter if: |
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(1) sold to a person using the aircraft as a |
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certificated or licensed carrier of persons or property; |
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(2) sold to a person who: |
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(A) has a sales tax permit issued under this |
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chapter; and |
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(B) uses the aircraft for the purpose of |
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providing flight instruction that is: |
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(i) recognized by the Federal Aviation |
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Administration; |
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(ii) under the direct or general |
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supervision of a flight instructor certified by the Federal |
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Aviation Administration; and |
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(iii) designed to lead to a pilot |
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certificate or rating issued by the Federal Aviation Administration |
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or otherwise required by a rule or regulation of the Federal |
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Aviation Administration; |
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(3) sold to a foreign government; |
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(4) sold in this state to a person for use and |
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registration in another state or nation before any use in this state |
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other than flight training in the aircraft and the transportation |
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of the aircraft out of this state; or |
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(5) sold in this state to a person for use exclusively |
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in connection with an agricultural use, as defined by Section |
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23.51, and used for: |
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(A) predator control; |
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(B) wildlife or livestock capture; |
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(C) wildlife or livestock surveys; |
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(D) census counts of wildlife or livestock; |
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(E) animal or plant health inspection services; |
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[or] |
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(F) crop dusting, pollination, or seeding; or |
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(G) any other use necessary to operate a business |
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that performs any service described by Paragraphs (A)-(F). |
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(h) For purposes of the exemption under Subsection (a)(5), |
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an aircraft is considered to be for use exclusively in connection |
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with an agricultural use if 95 percent of the use of the aircraft is |
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for a purpose described by Subsections (a)(5)(A)-(G) |
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[(a)(5)(A)-(F)]. Intrastate travel [Travel of less than 30 miles
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each way] to a location to perform a service described by |
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Subsections (a)(5)(A)-(G) [(a)(5)(A)-(F)] does not disqualify an |
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aircraft from the exemption under Subsection (a)(5). A person who |
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claims an exemption under Subsection (a)(5) must maintain and make |
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available to the comptroller flight records for all uses of the |
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aircraft. |
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SECTION 2. The changes in law made by this Act do not affect |
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tax liability accruing before the effective date of this Act. That |
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liability continues in effect as if this Act had not been enacted, |
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and the former law is continued in effect for the collection of |
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taxes due and for civil and criminal enforcement of the liability |
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for those taxes. |
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SECTION 3. This Act takes effect September 1, 2019. |